Supreme Court Issues Notice on SEBI’s Challenge to SAT Order Lessening Penalties on Prannoy Roy & Radhika Roy

prannoy roy law Insider

Aastha Thakur

Published on: 07 November 2022 at 19:17 IST

The Supreme Court of India issued notice against the decision of Securities Appellate Tribunal (SAT) filed by the Securities and Exchange Board of India (SEBI) that reduced the penalties sensitive information from shareholders. These penalties were imposed on NDTV promoters Prannoy Roy and Radhika Roy.

The bench comprising Justices S Abdul Nazeer and V Ramasubramanian gave notice in the relation to the matter. It is probably going to be listed next week for hearing.

The SAT had declared on July 20, 2022, that the penalties levied by SEBI against Prannoy Roy, Radhika Roy, and others for failing to disclose important information to NDTV shareholders were exorbitant and disproportionate to the alleged offences.

As a result, the Roys and their business, RRPR Holding, paid a fine of 5 crore instead of 25 crore for failing to disclose a credit agreement they had with Vishvapradhan Commercial Private Limited (VCPL).

In addition, it was determined that the order prohibiting them from entering the securities market or accepting any position as a director was wholly inappropriate and unrelated to the claimed infraction.

Further, it was determined that the listing agreement had been broken by withholding the loan agreement from the minutes of a Board of Directors meeting. The SAT lowered the fine from 5 crore to 10 lakh as it deemed to be disproportionate.

According to a shareholder complaint that led directly to present lawsuit, the Roys and RRPR are accused of violating the SEBI Act, Rules, and Regulations by failing to disclose material information about the loan agreement with ICICI Bank and VCPL to shareholders.

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